Virgin Islands

Why do registered offshore companies choose the Virgin Islands

With the integration of the world economy and the globalization of enterprise management, the establishment of offshore companies has become an effective way for enterprises to carry out international trade, overseas investment, public listing, asset allocation and other transnational operations. In the wave of "going out" of Chinese enterprises, registered BVI company is a popular choice for many enterprises to carry out transnational operations. What kind of company is BVI company? What are the benefits of registering a BVI company? 

What is BVI Company

With the continuous emergence of offshore companies, the importance of offshore companies for Chinese enterprises to "go out" has become increasingly prominent. BVI is the English abbreviation of the British Virgin Islands. BVI Company is a company registered in the British Virgin Islands in accordance with local law. The British Virgin Islands is one of the most prosperous regions in the Caribbean Sea. Financial services and tourism are the two pillars of its economy, but from an economic perspective, it is clear that financial services are more important. In the British Virgin Islands, nearly half of government revenue comes directly from licensing fees for offshore companies.

Advantages and Convenience of Registering BVI Company

1) Legal protection: registered BVI company can get higher protection, BVI has an independent legal and judicial system, the local practice of British common law.

2) No foreign exchange control: the legal tender of BVI is US dollar. There is no foreign exchange control over the flow of money in and out of the country, and there is no restriction on the flow of any currency.

3) Tax preferences: The greatest advantage of registered companies in the Virgin Islands is that offshore companies can enjoy very low taxation, or even tax-free benefits. BVI does not need to apply for local tax or report financial statements to the local government. BVI company does not need to pay various complex taxes, such as corporate tax, income tax, profit tax, asset tax and so on. It only needs to pay the licence fee every year, and the licence fee has become one of the important taxes of the local government of the Virgin Islands.

4) Information confidentiality: BVI government provides privacy protection for enterprises, and directors'information is absolutely confidential. The company does not need to report any information of shareholders, directors and senior managers to the local government, except for the purpose of due diligence to disclose to the registered agent.

5) Good policy environment: BVI is a very stable political, economic and trade environment, and the Virgin Islands can provide a good business environment for BVI. At the same time, in order to encourage economic development and attract foreign investment, the local government allows one person to own a BVI Limited Company.

BVI operates simply

BVI company registration procedures are simple, BVI company procedures and processes can be completed quickly in a short period of time, more ready-made companies for customers to choose, convenient to start operation in a short period of time.

BVI company has no minimum registered capital limit. Shareholders'capital issuance can be issued at other non-cash prices or in any currency. Standard registered equity is 50,000 shares, or more.

As we all know, BVI company has great advantages in tax and audit. BVI company does not need to declare managerial information, accounts and annual reports are not required to be public, which brings great convenience to the operation and operation of BVI company.

In addition, many Chinese enterprises register BVI companies in order to establish an overseas listing structure. At present, almost all domestic companies accepting overseas venture capital and red chip listing will apply BVI to their offshore structure.